LiftFund is ready to assist you during this time. We have special public and private partnerships to assist small business across our footprint. Please note that there is limited funding for the special programs, but we are offering a LiftFund COVID-19 loan to assist small businesses during this time.

SBA 504 Loans

The 504 Loan Program was created by the SBA to help small businesses meet their commercial real estate and equipment needs.

As a Certified Development Company (CDC), LiftFund administers SBA’s 504 Loan Program in Texas. This program is designed specifically to finance fixed asset acquisition such as:

Purchase of existing buildings

Purchase of land and land improvements

Construction of new facilities or modernizing, renovating or converting existing facilities

Purchase of long-term machinery

Some furniture and fixtures

In addition, the 504 program can also be used to refinance existing debt that is:

Outstanding for at least 2 years

Owed by a business in operation at least 2 years

Current on all payments for the last 12 months

Originally used substantially (85% or more) to finance eligible 504 uses (see above)

A non-federal loan

A typical 504 loan financing structure shows how LiftFund works in partnership with a participating lender (typically a bank) to finance a portion of the project. Most projects require a 50-40-10 split, but there are exceptions. An additional 5% equity will be required for new businesses and/or projects considered “special purpose”.

Advantages of the 504 Loan Program

90% financing

Longer loan amortizations, no balloon payments (up to 20 years)

Fixed interest rates

To qualify, an applicant must create or retain one job for every $65,000 financed by SBA or meet one of SBA’s community development or public policy goals.